ITC 2020 Rates - There is Still Time to Save

Sometimes a business may not know where to start when thinking of installing solar, especially if they don’t have land to spare for installations. Our JKB Energy team always enjoys challenging projects because it provides the opportunity for us to be creative and present a perfect solution with the largest impact for our clients. Solutions can vary from building in a water storage basin to implementing our utility tie-in before construction starts in order to avoid any seasonal disruptions. Each situation is a little different which allows us to showcase our ability to make each installation unique.

Saving on Solar – NOW is the time!

As of 2020, the Federal Investment Tax Credit (ITC) for solar is set at 26 percent. In 2021 it is set to drop to 22 percent, and down to 10 percent in 2022 where it will remain indefinitely for businesses.
 
So, what does this mean if you’re looking to install solar? This is a very tight deadline for businesses. Tight deadlines require longer lead times and quicker decision making. To be connected and active, solar installations typically take 6 to 12 months to complete.
 
But don’t worry, we have some good news for you! The IRS released a guidance, referred to as “safe harbor”, that clarifies the definition of “construction date” for businesses looking to benefit from the ITC.

The new “safe harbor” tax reform and legislative terms include a 26 percent Federal Investment Tax Credit (ITC) that is valid only through 2020. After 2020, the credit will continue to drop down every year eventually reaching 10 percent in the year 2022, where it will remain indefinitely for businesses.
 
Now is the time to install solar because 2020 is the highest tax credit you’ll be able to receive.

Seasonal Use: Solar Credits in Off-Season

Solar is a great investment for businesses that operate seasonally because installing a solar system typically offsets the majority of cost while meeting their needs in a very unique way.  Metered (NEM) solar systems are a perfect fit for this type of seasonal customer. With a NEM system, the customer gets to bank those off-season solar credits at retail value to be used during their on-season which allows for a drastic reduction in their utility bill. 

Contact us now to see how you can save on solar and how to invest.